Britain is finally heading into a sustained recovery five years after the
financial crash, the Bank of England Governor said yesterday.

Sir Mervyn King said that the Bank was raising its growth forecast modestly
while trimming back its inflation outlook, the first time that it has done
this since 2007.

The Governor hailed the “welcome change in the economic outlook” as he
revealed his final set of forecasts before retiring after ten years at the
helm of the Bank. But with separate figures revealing higher unemployment,
the Bank also sent a clear signal that interest rates were likely to be